Origin dismisses BG £6.7bn offer
Friday 4th July 2008, 9:24AM BST.
Australian energy group has told shareholders to reject a £6.7 billion bid from the UK’s BG Group.
The board of Origin Energy now intends to recommend that shareholders reject BG’s bid of AU$15.50 cash per share.
Origin’s Chairman Kevin McCann said the offer did not take into account a continued strong interest in the coal seam gas (CSG) and the sudden hikes in oil prices.
However, BG has claimed Origin is over-egging their CSG position.
BG Group chief executive Frank Chapman said: “It remains the case that Origin must spend a significant amount of time and money to prove up its CSG potential. Origin continues to lag its competitors in the exploration and appraisal of its CSG acreage.”
He added: “Our offer is not focused solely on Origin’s coal seam gas resources. We wish to retain and invest in all of Origin’s businesses in Australia – from gas resources and power generation through to retail gas and electricity marketing.”
In early trading the BG Group share price fell 0.16 per cent to 1216p.
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